SINGAPORE (Jan 17): First REIT has reported a full year distribution per unit of 8.47 cents for FY16 to December, an increase of 2% from the 8.3 cents declared in FY15.
The REIT said in a release on Tuesday that the distribution was the highest since its listing.
Gross revenue rose 6.3% to $107 million, on the back of the full year contribution from Siloam Hospitals Kupang and Lippo Plaza Kupang which were acquired in December 2015.
Property operating expenses fell 16.9% to $1.2 million due in part to the lower expenses incurred for Sarang Hospital so net property income was 6.6% higher at $105.8 million.
Interest income also increased from $231,000 to $1.1 million on the interest earned from the progress payment for the development of the new Siloam Hospitals Surabaya.
Manager’s management fees rose 7.1% to $10.6 million, and trustee fees increased 7% to $398,000. Finance costs rose 7.4% to $17.8 million from the higher loans taken to finance the Kupang properties and other expenses rose 21.2% to $3.3 million.
As such, distributable income rose 5.4% to $65.2 million.
First REIT’s trustee manager said that Indonesia’s healthcare sector is set for faster growth with the full implementation of the national health insurance scheme, and added that the REIT will continue to enjoy yield accretive acquisitions arising from its right of first refusal pipeline of 43 hospitals from its sponsor PT Lippo Karawaci.
The REIT’s recently completed acquisition of Siloam Hospitals Labuan Bajo is also expected to boost its earnings for FY17.
Shares in First REIT closed 1.5 cents higher at $1.295 on Tuesday.